What you need to know if you get a letter in the mail from the IRS

What You Need to Know if You Get a Letter in the Mail from the IRS

 
Each year, the IRS mails millions of notices and letters to taxpayers for a variety of reasons. If you receive correspondence from the IRS don’t panic, and call Vermillion immediately. We can usually deal with a notice simply by responding to it.

Below are the steps that we go through once you call us:

1. Most IRS notices are about federal tax returns or tax accounts. Each notice has specific instructions, so we will read your notice carefully because it will tell us what needs to be done.

2. Your notice will likely be about changes to your account, taxes you owe or a payment request. However, your notice may ask for more information about a specific issue. If so, the possible resolution is for us to simply send them that additional information.

3. If your notice says that the IRS changed or corrected your tax return, we will review the information and compare it with your original return.

4. If you agree with the notice, you usually don’t need to reply unless it gives you other instructions or you need to make a payment.

5. If you don’t agree with the notice, you will need to respond. We will compose a letter which you can sign that explains the disagreement. The letter will need to include supporting information and documents for the IRS to consider. All responses will be mailed return receipt to the address on the contact stub. You must allow at least 30 days for a response.

Additional TIPS for this type of event:

• For most notices, you won’t need to call or visit an IRS walk-in center. If you have questions, call the assigned phone number in the upper right-hand corner of the notice. Be sure to have a copy of your tax return for the specific year listed in the notice, and the notice itself with you when you call.

• Always keep copies of any notices you receive with your tax records. Your tax preparer may need to reference them the following year.

• Be alert for tax scams. The IRS sends letters and notices by mail. The IRS will never contact people by telephone, email, or social media to ask for personal or financial information.

If you owe tax, you will have several payment options. The IRS will not demand that you pay in a certain way, such as by prepaid debit or credit card.

• For more on this topic, visit IRS.gov. Click on the link Responding to a Notice at the bottom center of the IRS home page. Also, see Publication 594, The IRS Collection Process. You can get it on IRS.gov/forms at any time.

• If you need to make a payment visit IRS.gov/payments or use the IRS2Go app to make the payment with Direct Pay for free.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. They are all listed on IRS.gov.
 
Additional IRS Resources:

• Tax Topic 651 – Notices – What to Do

• Tax Topic 653 – IRS Notices and Bills, Penalties, and Interest Charges

• Understanding Your CP2000 Notice

IRS YouTube Videos:

• Search for: “Received a Letter from the IRS?”

Information about every topic mentioned above can be found at: IRS.gov

 
Note: The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendation for any individual. Please remember that past performance of investments may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this post serves as the receipt of, or as a substitute for, personalized investment advice from Vermillion Financial Advisors, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed within this newsletter to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.